Banco Bradesco S.A. Q1 2023 Earnings Call
[noise] philosophy.
Yes.
Beautiful.
Medicine hat.
When somebody got.
How about yourself.
No.
Yes.
And Thanos.
Part of the problem.
Great.
Both of them.
Okay.
Welcome to the outlet shops.
It's probably another 100.
Oh, Hey, guys.
What do you have any thought at all.
No.
Portable game.
None yet bottoming.
Wow.
And I didn't get that.
Gotcha.
Well that's helpful.
Badri.
So let me hit the commodity chicken was Haynesville love them I assume it sounds like was he has.
Okay.
Yeah.
Got it.
Got it.
Yeah.
Okay.
The premier.
[laughter] doesn't limit.
He presented within Poland.
Yeah.
Thanks.
Okay.
He kind of assistance.
Almost negligible.
Two from me.
Okay.
All right.
I have a second.
Right.
What is it.
The case your grandma's at what looks like what was it.
Oh my.
Good.
Yes.
Well it should be.
This is Mike.
I guess.
Questions.
Pretty much.
Well that's it.
Okay.
<unk> got almost done there.
For me the Moore's law schools nationally.
Good morning.
As you know under pressure.
Okay.
Provisioning.
And that's just in total.
No.
What have you.
Oh gosh, it's normal to put out the numbers.
We try and manage.
Single digit.
Okay.
Particularly as it was.
Yes.
Yeah.
Is a recovery.
Hum.
Before we talk about.
No I remember that one alone.
Hum.
Ah handles.
Awesome.
Okay.
My mom was home.
Appreciate it.
You bet.
Yeah.
But that's.
I was just watching was flat.
Oh My God.
Okay.
Gotcha.
Okay.
I hope that each of Brazil.
Hum.
You still have all of this was one of them.
With me on.
That was great.
Can you tell me what it used to be known.
Mark this is little bit along the way.
It was about it.
Yeah.
Oh, Oh Oh.
It is.
I mean, that's pretty easy.
We have a.
Business softened.
What are you doing.
Was it somewhat.
Got it.
Okay.
Retail.
Just one more.
You didn't do that.
Mhm trusted.
That is a little more.
Okay.
Think about this.
But I believe one of the things I'm not.
Thank you Martha.
Oh my.
Linda.
Hmm.
Yes.
Nobody is yet you might have.
No.
No.
Consumables.
Oh, sorry sure.
So yes.
Yes.
At this point.
Thank you.
Yeah.
Oh I'm sorry.
For those.
That's why it's no longer just yet.
Yeah.
That's correct.
Correct.
I used to call them.
And what does that tell me.
Oh, my God bless them.
Do we see.
But I sit in my view.
Yes. It is.
Once you invest in areas.
Hamdan Beachcombers only.
Hello.
How much of a mutation independent auctions.
It would be one 5 million this year.
Oh man investments English why do it.
Great.
There's more than two hours.
No.
Spread.
Good morning.
Okay.
Thanks to our customers.
Okay.
Being prudent.
Some customers.
Sorry, yes.
Yes.
Centralized disabled.
That's not enough supply, but then it should come on the market.
Michael.
We wouldn't want.
I bumped up a notch.
Thank you.
Right.
Hum.
Four months.
Okay.
Evidenced.
Yes.
Oh fences.
Digital.
Ladies and gentlemen.
When we do we have to go crazy.
You're welcome.
Right.
Available.
She is excellent.
Could it be.
I couldn't didn't have.
Fair enough.
That's great.
Yeah.
So that's number one.
That's cool.
I'll take number two.
And welcome.
Okay.
We don't like to change that.
Who could look at the details.
You said it was higgins distinguishing them closer to the range.
Just maybe to go through.
At the midpoint.
Infrastructure.
Thanks Shannon.
Infection, but my sense is there a bottleneck.
What do you mean.
None of them.
People, who have formed this concept underneath the pit.
Was it.
So millions bookers television.
You Wanna.
Okay.
But how should we choose to lessen.
Hum.
Uhm.
Oh.
Almost.
So no more.
Once you submit.
We've been much more of it.
With my.
Okay.
Right.
Right.
Okay.
All right.
In D C.
Yeah.
Pressure and that's the model.
And what have you.
I get it.
Yeah.
Me myself.
No dmitry.
Yes.
Number four.
But most of them.
It's always a mystery.
So if you do.
Thank.
And I'd, just say almost gosh.
Hum.
Okay.
Yeah.
Two claims.
Oh, yes.
Got it.
No.
Thank you, Chris Contra example, Chicago.
Got it.
46 years.
Okay.
Yeah.
Jimmy Choo total.
Religion.
Yeah.
So that's really the only man.
Okay.
Claims at a magic one column.
Okay.
Jordan.
We just don't book.
If you move or not.
Bonnie.
Hum.
The pollution.
Yeah, I'll just technological transfer.
All the channels at all.
It does.
Switching.
Jim.
Yes.
Interest level.
D H one.
Okay.
Sure.
I'm, Bob I'm sorry.
Good morning.
I presume that golf's who's not faulting.
Maybe I'm wrong, but even though we've got lots of them.
At this time.
Okay.
Present.
Why do you wish to game S E.
Six <unk>.
No they didn't.
St.
They continue or not.
Gotcha.
Got it that's all.
It is worth noting as I mentioned in the promo example, I can figure it out.
Got it.
Oh goodness.
Got it.
Is this going to cost.
And I agree with you.
Hey, How's it will continue.
Alright.
Well most of them.
What is important.
Yeah.
These days.
Interesting.
Okay.
Virginia Beach.
As with deepening most likely with you in August .
Okay.
Okay.
Ooh Ooh.
It's mixed.
I think almost all of them.
So bill.
Gotcha.
Our performance in Europe , Okay.
Hey, Mark.
On today's call.
Some little things because I listen since portal.
Nobody is listening.
So all of these changes.
Yeah.
Improvements in blood I mean, I'm a lot of games.
Oh I'm sorry.
Okay.
No no no.
Can you tell us like what else could you refresh me.
Before the holidays.
Hum.
Hum.
Okay.
The center.
My first name is more funding.
Do you remember.
Laughs picture.
Our main goals.
Hum.
Cool.
Okay.
What you've done.
And Chris mentioned the comedy Central data.
Yeah.
Oh gosh.
Got it.
We're just going to screw it up.
Yeah.
Okay.
Hum.
At this time.
Yes.
Oh My God.
It could be.
John .
Okay.
And I know you spoke.
Got it.
Yeah.
Thanks.
It wasn't in Boston.
Yeah.
I've got nothing.
For him.
James and I can't remember if working days or.
So I'm wondering if you could.
Yeah.
First of all these people.
John one thing.
Yeah.
Thank.
Thank you Michelle.
Okay.
Additionally interest rates.
So just the appetite.
When you meet him in Raleigh.
Alan.
Now some divisions in e-commerce.
He is a smart and myself.
Yes.
International was up one point.
It goes up 2% in 12 months.
Hi claims yet and really help.
That's cool.
Sure.
With that we can reach into the indicated range.
What do you most people have never credit policy.
No I haven't.
Well done.
Okay.
No.
What are you watching.
Oh gosh.
And just to be sure.
So I think it becomes more.
I don't know if that's needed.
Yeah.
This is my first question was.
Oh, yes.
Alright.
Yes.
This is Mike.
Chris.
Moving to the Moon.
What happened was that where you want it.
Right right.
And junction Islands initiated over the last.
Uh huh.
Okay.
In newer vintages.
Right.
Yeah.
No.
Okay.
Sounds good.
It's almost it's almost like I said.
The change in the region.
Okay.
I would describe it.
What do you want to position.
Yeah that was in line with guidance and annualize it to solve the installed did you say that yet.
Our balance sheet.
Brilliant.
Oh no no.
Oh well.
Right.
Okay.
But people like loss I'm, sorry, I'm sorry.
No.
Thank goodness a bunch of it is mandatory on in January .
We have seen a lot of credit Suisse.
Yes.
So could you along with it.
And an improved mix.
Okay.
Okay.
Okay.
We just don't know sequel systems.
Three months.
Yes.
Chalk up a lot.
Sure.
Richard I'm glad I've got.
I think it's useful.
Oh, yes.
That's why if I got that.
Qualifications of car local risk credits, which happened.
Sure.
As we have made to the policy.
Hi.
Racial profiling intra company, but you shouldn't be switched.
I don't know what level of provisioning.
Oh yeah.
Yeah.
Okay.
Okay.
Yeah.
Loved it.
But the two right.
And Doug Arthur.
That'd be interesting.
As a nation.
No I was just talking about this.
Ah sooner.
RTL.
Sure.
Okay.
Today.
Sure.
M D.
Yeah.
Thanks.
Yeah.
All have been constant.
With luck.
Right.
Yes.
King.
Yeah.
That's great.
I can say is for us.
Namely in one.
Yes.
How's the dishes.
Neutral.
That's great.
Okay.
Got it.
There's a sense it would be like 5%.
Thank you.
He said picked it up in the next month.
We believe that we're approaching them.
I want to keep up with it anymore.
Sales are doing just that.
Okay.
Got it.
Indicators.
T D D.
Hi, Bob.
In my school provisions cases of corporate clients that got paid off.
Really appreciate it.
They just take millions of ounces.
Sorry, I forgot to renegotiate at less than 90 days.
Which our operations are the highest.
I'm worried because they hang up.
Okay.
And so traditional credit.
20%.
Wow.
At this point.
Just maybe one third of the total provisions.
No.
Now my mom.
Hum.
Hum.
I'll ask Mark if I could.
Thanks, Mike.
Right.
Mark It up yourself.
Yeah.
Yeah chip gradually.
Oh gosh.
Yeah.
I see our norm.
And maybe I'm off on that.
Second half of 'twenty.
All I have.
Sure.
Hi.
Yeah on ear increase.
Got it.
Absolutely.
On an annual basis.
Florida.
Awesome.
This has been resolved.
Market.
With a much stronger number all I can help.
Last year as well.
I've never seen a recapture.
Great.
Well see the scatter market NII in the second half of 'twenty.
So and I am sure quarterly growth of 20 P E beam column and lastly, let's move on to the Internet right.
G H.
800, because to me that's fine thank.
And just kind of at least a positive.
Yeah Alex.
And I I always like 12 months.
Instead of each.
Hum.
Some challenges somebody they said guys state, especially items and that's what's closed the quarter with.
6% just below the floor.
Yeah.
Moving to the guidance.
Driving net income remains quite positive.
You may have.
No matter how important on higher.
The checking account lines.
No issues.
Hum.
I am market, that's probably that.
But it will recover.
Medium type games.
Okay, Yes.
M P S and playing out all the forms and Mastercard.
Signs of improvement are clear.
So they've made in their software strategy.
Also I want to I don't know, whether he's showing significant improvement.
In the past our titles.
Chris.
Tell us what's wrong.
Both onshore and offshore colander, he says look but I somehow.
Members of the bone spring.
Ooh wait as a cost of switching their solid performance.
Despite this September .
Got it.
Can you just missed the various contracts with the contractors.
So first of all is my my speech of science at the bottom of our Tightest Road map, especially now with the Florida grew 9%.
Oh, my gosh, it shouldn't say $6 six per cent for it must be interested and excited about that so as we had outlined.
Oh, My God, you said guidance.
Guidance for 15.
Oh I see.
Sure.
I'm from the Oh My God.
Somebody might not reach those at a lower basis of comparison.
Right.
Secondly, there's a nice but the investments we're making those adjustments.
Uh huh.
Got it.
D G.
Yeah.
And if a better themselves and I think I tell them well.
Well I have to.
I was just supposed to do just fine.
Michelle.
Hum.
Cost of surfing and tried to 'twenty following the ball off sudden is there do you see more than an hour.
Oh you bet.
Uh huh.
Hum.
So when do you want to.
Religion.
10% Okay.
Okay.
Ooh Boggle My after school.
Michelle.
So, especially with it.
Both of them.
No I agree.
The jumbo.
Yeah.
Yes.
Okay.
Yes.
I O E F 18 point cheaper spuds in a bid.
You bet.
Nice to see who come on down easily manageable. Thank you gentlemen.
Ooh I come up with.
That's correct.
Yeah.
Yeah.
That's all my life.
Okay.
The first question.
Indoors muscle disorder.
With people so not as it relates to women.
Blended emails avoid it was talked about water.
It's not one thing.
People do more a lot more he studies in animals Nancy.
Development and also for the post results.
Sure.
And no matter what.
So instead of once a day.
I actually just got English, which of the knee.
Oh, I see our Lincoln edge.
Yes.
It's also amazing a strategy that's pretty frequent.
Yeah.
And most of them.
Acknowledgements and employee satisfaction quantifying them and coupled with that when we tell them.
Almost exactly yeah.
Yes.
In August .
Doesn't visit by the way.
With Congress.
Companies in the classroom.
God with sustainability.
Okay.
Generating operation.
I was wondering if that mental and Dallas input how battlefield one, especially.
Yeah.
Uh huh.
Okay.
Michelle.
Financing.
Okay.
It's just not as tough as well.
And then B R Ellison initiative.
Social and environmental samples.
That's right.
Yeah, Yeah yeah.
Yeah, just intermediate sacramental targets in line with the nice too.
See the financial World.
They remain at the forefront.
What I'm Gonna have fire news.
How can fight nationally positioned at the principles for responsible banking.
Uh huh.
Before we move on to this.
Okay.
Yeah.
Yes.
It's on the slide so numbers.
We met with a theory at well known brands.
As a reminder.
Albert.
Pardon me.
Somebody in person.
Yeah.
In addition, we were also.
I like our employee wage slaves to great place to work because I always.
Gotcha.
Okay.
That's now at the other side you have to teach the questions.
The last recession.
Okay.
[noise] [noise].
Oh.
Yeah.
Yeah.
Right.
Okay.
Yeah.
Oh it was.
Gotcha.
Uh huh.
No.
As most of you.
The Q&A session.
Well.
Yes.
Got it.
Next question comes from Atlanta.
The teachers most men go ahead.
Okay.
Hum.
One of them.
Yeah.
Mhm news about did we kept going up.
I think we can say that the worse.
But it's behind us.
Yes, we can.
Profitability.
They are just recovering.
Each of them.
So maybe you could give us.
That's what a recovery.
I think it's taken me.
I need to read.
Perhaps higher income maybe that's.
Why then recovery.
Sure.
I'm not too concerned whether it's a bank.
Hum.
Maybe touch a bit on that.
Scenario ahead.
But there's a lot of new ones every day right.
It took me how he sees this recovery how long it would take could you quantify the debate a.
Hello.
It's very much been the pitch.
Yes.
Oh go ahead.
We are somewhat cautious because so.
It would be totally under control and we already see.
She loves to say, we have things in the area.
South Carolina.
But we have to wait and have to be very careful with housekeeping question actually wound up.
Depressant.
You too Sterling.
Two streams.
Right.
And to your point is a great company when you've introduced a new cold storage.
NPL level.
Of course also the same pool.
Or more like 75 days.
And blown crunching.
Oh no.
One somebody.
My last clarifying algorithms need more to say that's a good operation with good.
And it really well.
It just started and things that move around.
Hi, Nathan.
Was it a contraction.
Okay.
Oh Wow.
My first remark from West Virginia, So people tend to be now waiting to see what's going to happen in terms of tax rate.
That's the same way.
So maybe to a large corporation right.
Yeah, not a lot from Kilmarnock upsides.
Oh My Kid in Q1.
Very good a couple of them deal what's happening a lot of things well did not end up happening. So we think the economics for this.
Arguably the wait and see.
And that's something you're thinking about it right.
Our first quarter within our expectation almost group and our nation.
We're trying to do.
We're doing it because he made.
I mean do you think that whatever you want to have to pay to Tuesday.
This comprehensive D.
And I think that's enough to be able to deliver 20 to history overall.
That's right Dan.
Sure.
There's a few years ago.
Two challenges.
Okay.
We have seen signs of something better to do right.
Albert.
No.
That's just not how long is it.
Even though the GDP is not very much Francesca.
I believe the types of things.
We have prepayments.
All the scenarios.
All of our lines are prepared.
What it was yes, if did you oh.
Unexpectedly.
Thanks.
International terrorism, that's supposed to come we have.
Okay.
Yes.
And we did all of them in high income as I mentioned, we did some way retail banking.
Investments.
Thanks Emily.
Sure that's good for us.
It's an important result in Q1.
But again.
Thank you Oscar.
Well also.
Second question from Thiago Batista Thiago.
Thiago.
Hello, St Charles.
Yes, Jack or we can hear you.
Well Howard.
You lost me.
You talked about.
Well the focus on insurance companies.
18%.
Okay.
In terms of recovering from insurance.
Hum.
All of them are basically looking at the troops.
When did they know.
Okay.
Question I Wonder if you like.
And for me.
Second one when you look at the numbers.
Bailey.
In the middle.
Uh huh.
A couple for me since I missed it.
Yeah.
That's helpful.
I think between midstream and also I'd like to know about the profitability in general.
Okay.
And then shifting to salaries.
Oh, she was group well answering.
Your question about the company and I will address your questions.
You don't go to ship.
No.
Good morning. Thank.
Thank you Thiago for the question.
Yes.
Let's see.
In insurance company.
On hosting.
At one point.
Yeah, you'll see around the net income 25 million.
It was 18%.
And I liked it.
Mhm comfortable with original cannot operation.
Insurance operating condition.
Wayne.
Hum.
Okay.
The guidance communicated.
Yes.
The ability for the future which is.
Right.
Perfect.
Of course, it will depend.
Yeah, I mean, well still kind of training.
Countries.
The probability of.
The higher participant growth.
Hum.
I mean, it's quite volatile.
Well hopefully once that test on the market of insurance claims.
We won't have to put guidance in terms of I O E M.
Which reflects our estimate.
Our casting and I want to remind that the reduced intelligent.
And I also tell.
And the economy.
Right.
Intertek ensure snooper, whose a cheesy right along 20 new training.
Yes.
Hum.
That is requested trying together.
Right.
Yeah.
Sure.
But more important.
But as I said, we don't give up.
Based upon the results of the bank and insurance company is behaving.
Wow before no that's unchanged as mentioned before they had been hosting constant growth.
I'm not sure of 18% in Q1.
I mean, it's 25 billion.
I took with Ethernet.
Our goal is to have 100 billion.
Revenues of insurance.
Sure.
Thank goodness.
I'm sure most companies.
Right.
All of its companies.
Mhm.
So just going to say.
Not trying to sell into any geography.
Yeah.
Okay.
Hi, Oh.
No.
As we have insurance.
Sure.
And they forgot to put the senior member of the bank.
Oh yeah.
Revenues of the insurance company. So we always had a very positive.
A couple of insurance.
And then to move gradually.
A L L emissions.
Sure Matt.
And our first half second half and to what.
Uh huh.
'twenty two.
What we can observe ladder.
Clearly there's like Crazy.
Among them are the ones I saw you grew less crowded.
Yes not.
Not really because without that kind of held you back.
Hi, guys.
Yes.
And of course.
Looking at our provision.
The senior credit facility.
Because of all the factors that I missed.
Yeah.
We still don't know.
Oh geez.
Oh.
Right.
Can you just talk a little bit what is more important.
Yeah.
So for marine harvest.
Yes.
Oh I'm sorry go ahead.
Along the way.
Oh no.
We believe it's possible it could go up.
Yeah, Yeah yeah.
Is it going to be to the regulation.
When do you expect.
Yeah, right now, Mike Leach will be amortized and so it's a challenge.
Is that the only thing.
Oh, Oh Oh.
The Memphis is a genuine.
Okay.
Oh, My God I believe.
Oh man.
Right.
Hum.
So that's kind of provision.
That's great.
Adjustments.
Got it.
I am.
But some of them move in parallel.
Okay.
Among the two all the changes.
The benefit in other muscle.
Oh.
Okay.
Interest rates went up.
Okay, that's great.
Oh good.
In book publishing and have been in the past all of that.
Mr Harris.
Just one additional point.
Yeah.
Limitation.
Two one.
In terms of reduction of provision.
The reposition the expected loss.
So more to come in.
Nation kind of books.
Okay.
We got your position in the world.
Sure.
The Orange that division they find one at launch.
No that's right.
Okay.
These anticipated provisions.
That's very clear thank you very.
Very much.
There's lots of things.
No.
Yes M J P Morgan.
Go ahead.
Good morning, everyone things.
It's interesting Chris if you could share a little bit more about the evolution.
And there are two NPL formation and delinquency.
Oh, it's a part of them now and I apologize if I missed the comments that they have made.
But I think that when you.
New formation around tough, but maybe if you can explain a little bit more if it weren't spread our street again for a partner.
Florida.
It wasn't even Christmas and then to page 10.
Can you just tell us the formation in April that would be an indication perhaps it would not have about formation. You can just tell me about the M. P. L mind today.
How temporary it is that way.
So why on Earth.
That's it I always saw a slow down in this formation.
In terms of the evolution of the promotional we are probably maybe not at the beach off formation. This quarter, we're going to find whether it will be confirmed it will still remain high.
Hi in the second quarter.
And we expect.
I had to sell them at the beginning of the reduction in NPL formation as of the third quarter.
That's well.
To see this extra training.
Good morning.
Yeah.
We actually when we look at the new vintages, so hot what's been happening at least.
Opinion for and when I talk about new cohorts I'm talking about August two.
July through October of last year, when we look at the water billing British D. C. N P. L condition, but now we see positive signs of a much more controlled MPL and I sat in my personal tastes.
At the new vintages the NIM.
I have always show that 95% or.
Yeah.
Oh I'm sorry.
Yes, you'll have better ratings. So that's all that it gives us.
So that's how it should behave this year over time or throughout the year I'll tell you what they need to be.
Match for what we've been saying that.
This first quarter.
N P O would still be a little high in the second quarter as well have been telling them that makes it and it would also be a little bit higher but she just woke up there.
New medicines are racing to decrease over time as credit becomes I'll try a statin.
We see that already happening, it's normal that it should happen and that's why there's more consumption of T allowance. So I see that you mentioned.
While most intuitive and natural resistance animal time of a positive cycle are you satisfied more allowance for that at a time or was it.
The more restrictive scenario you can consume those proficiencies provisions, but as I said I don't know if you were listening yet, but we have a 9.3 as total provision for the total credit portfolio so well.
Would you consider.
Right.
All of our portfolio.
Excluding those operations that are 100% provision for.
Considering base, one that all of the provision with a portfolio with credit for more than 90 days is it 58 times coverage.
We see for us that's very adequate level of provisions and the engine has been shown through things. We haven't closed April yet, but it is already better than March was in February was and so on.
Excellent thank him.
Hum.
There's still a lot of stuff from Goldman Sachs. Your question it will be as English.
You'll maintain.
And once again.
Peter go ahead please.
Okay.
Yeah.
Go ahead.
Yeah.
Hello.
Both rates and pressure on spreads.
Well, how do you think about your ability to deliver on the revenue guide is focused I guess on the net interest income and then yeah.
Pes as well, but on the net interest income off of it.
The client and I looks a bit weaker partly offset by market NII, which seems to be doing a little bit better than expected, although still negative or if you could just help us think about those dynamics in the current environment. You know were still high rates slowing loan growth and you know what does that mean for both the client and I and the market NII from here and then certainly feasible.
I mean, I know, there's some seasonality, but you know most lines were down in the quarter. Yeah. Do you think that 2% growth is what we should expect anything that you can do there to improve that fee income growth from here. Thank you.
Thank you Richard though a good morning to talk go into something like I think that you've got to go to someone like US who can I ask you for a minute or so that in itself will cause Smith and superbowl squad precept.
<unk> moved them from <unk>.
But as I said, mostly due to the caution that we have with those.
Clients are a part of them away.
Profile credit risk profile, but it's we see the growth that we're getting in the personal loan then.
Real estate financing even in payroll deductible loans that ended up growing less because it was impacted by that issue that we had at the cap of the interest rate.
We were almost two weeks, our neighbors, who operate but all of those portfolios have been growing wow.
We start lower.
That was a sudden inversion of corporate title.
Most of the operations with large.
Corporate small medium sized companies, but most of that due to the lack of demand maybe because people are spending I am waiting a month before they start taking loans again large corporate may make them.
Taking longer for the moment working capital.
Credit operations for lower longer times for investment or.
Arthur says that have a longer.
Maturity, even due to the interest rates up nearly 14% Theres a sense from the companies that it's time to wait till later.
The tax framework was already.
Disclosed by I don't have good expectations for the tax reform it seems like a good sign that we're starting to see in terms of inflation in the country as well.
Maybe the profit have not yet reached the desired level, but when you can't help but I don't see any sign of a indication of improvement against the statement of the Central Bank with Alaska, a phone meeting already mentioned a scenario that doesn't show as much pressure.
Before interest rates increase so the scenario seems to be improving and everybody seems to be standing by the fast growing we have a portfolio N D retail bank of Atlanta and portfolio in the retail bank. That's one of the largest in the market. So I believe that everything.
Are materializing in the window and even the appetite for.
Changes in incidents.
As far as as people just yourself.
Well begin to accommodate with scenarios or.
No and the increase within that range of the guidance that we mentioned.
Now as for the equipment.
The fees that you mentioned.
It is really very close to the bottom of the guidance and we have huge challenges regulatory challenges in terms of families.
Challenges for the competition because today, you're able to open.
A checking account or the digital bank, even our own digital without any release so.
We lost the war and that's why we have that signed up that customer Centricity and yeah, that's generating positive perception.
All of our service with our clients so that we can.
Replace those fees and stuff like that.
That you lose from screen.
Are there and she is just because somebody investment bank as well.
Hasn't really moved this quarter. This first quarter, we had very little almost no operation. So theres no free up those operations.
So those are challenges that we need to go after and this we see incongruent.
So it depends on your growth first of all what I meant by that is expanding.
Days.
But expanding the base of customers that you have negotiated.
Recoveries, but I understand that this line item.
Considering the bank's strategic position throughout Brazil in all regions as well with the first course pass. So I believe we have the expectation to be temporary the fees line over the year. Just in addition about net income.
And I I one of the good news that we had this quarter, maybe all that well.
Well, it's a fantastic market NII as we said this has been following a trend of gradual recovery. This quarter. We believe it will continue improving over the next two quarters when suddenly closing either at a positive points even in the second half of the Oh.
Perfect.
Also NII I used to be.
In terms of our guidance the dynamic of the NII and market NII is very important.
Okay.
Yeah.
Yeah.
How do you think that continues to pressure your net interest margin also and you know how how long before that can begin to stabilize or anything that you can do there to boost those demand deposits from here. Thank you.
Thank you Chantal.
Possibly.
So I would say to the.
The population really didn't need to consume the same things that they had for sure.
Yes.
So that we see a job not only in bradesco, but in all financial institutions I think that the total deposits also a reflection of the growth of the country's GDP the volume of business volume.
My name is circulating but then people are also trying to protect themselves to make another investment, especially which will make the move up in interest rates that we have a 42%.
It's a migration even from investment funds not in fixed income.
Okay.
From Multimarket funds, there's operations of fixed income because there.
And then high with the interest rates at 14%, even with an expectation.
Yes.
Economic agents may have in mind that there's interest rates may go down so they're making the most of this moment up of higher interest rates.
Thank you.
Okay.
Thank you for the question.
Got it.
Alright.
Russell I'll try to do that.
Citi Bank.
Okay.
Oh.
One is a follow up question.
Just wanted to just and I'm Lucky.
Hum.
Who would put them at risk clients I'm going to see that.
And eventual reduction of.
Yeah.
Like what.
I'm just wondering how do you see looking forward.
I wasn't supposed to burden or should we expect another one.
And I am.
Hmm.
You talk about the nature of claims in the last 12 months.
Hmm.
Hi.
I have an interesting table on page 15 that pushes the evolution of maybe.
Claims originated in the last.
I think it's a big improvement.
Mhm.
Hum.
It's Glenn.
So that's working out.
That's oh, yes.
We've had a big improvement that.
That will translate into new phone okay.
We don't see it as one business.
Perhaps this week the new well.
No.
Hum.
Because it took a little bit.
What you said your most of its own.
We will have a mood.
Town.
Yes.
Can you lose operations not only for patients with.
No collateral.
Jim Mccabe and into operations, which limits at and available in the mobile App.
Uh huh.
Moving on.
But then we look.
Because I have to acknowledge it doesn't look great.
We ended up the hill.
Just go real lack of support Chilean population.
Just so we can have an improvement because we really just yet.
Okay.
Hi.
The population.
I have two.
Principally the population.
Hello, Mike.
Yes.
Hmm.
Mhm no checking.
Checking accounts in one too I think.
Okay.
I have two.
Thank you Frank.
Although nap.
And part two five minutes.
A few quick.
Any attractive journey.
It makes.
Hi, Michelle.
Checking accounts, we opened 12 franchise.
If anything in the mobile channel.
Thank you.
Yes.
It's all good.
Okay.
Using their credit cards.
The limit that they have 100.
Yes.
Two tragic and one two times.
Okay.
Cool.
Made it easier for people.
To get more crowded.
Hum.
But there are these two things.
You should.
Okay.
What was comfortable with us and help them.
It's what comes with a better credit rating.
Of course, when you're talking to.
Okay offering with Bluelinx.
Okay.
All of them.
Hum.
Oh no.
And money to continue.
What again.
The main ones.
The loan growth.
Oh portraits offerings.
Yeah.
Oh.
Cause money too.
Maybe more.
That's great.
Absolutely.
Thanks.
For those clients.
Okay. Okay.
Ratings.
Yes.
Next question please.
Gration correctly.
So to recap a couple of Costco.
Okay.
Hum.
Got it.
I'm just reaching out.
Actions.
Correct.
That's going to happen.
Oh.
Oh, Oh Oh.
Yes.
And then.
I see.
Yep.
Hey.
And the bank.
So does that mean.
Okay.
Great.
In this initiative.
So we started I think.
I mean.
Graduates.
These operations.
And when.
So should be the collateral.
Right.
Right.
<unk> operations.
That argument.
Right.
Yeah.
And that's why having a balance.
Yeah.
Well open the door a little wider.
Hum.
Improve our results when nations.
I'm going to hand in Cleveland, and I guess in that list.
What it does it into one of the two.
Yeah.
And also because we understand that.
So there will be an unexpected loan book that's.
Coming like I said.
Very much.
All of us.
Yes.
And as you can about who with something there.
Mhm.
Hmm.
That's correct yes.
Yes.
I have a follow up question to tutor question.
Yeah.
Put smoking.
Great.
Yes.
Materially.
No question.
I mean really good reason.
Yeah.
What's your kind of.
I expect it.
Moving to numbers.
On page two of the guidance.
Oh boy.
At this point.
It's a real risk of guidance no it isn't.
Yeah.
No no no you're correct.
Yeah.
Okay.
Each month.
Hum.
Hum.
Yes.
Converting.
Awesome.
Yeah.
G.
E D.
Maybe you have in mind.
Hum.
'twenty two.
I'm sorry.
No.
Okay.
And it it was the time line to move.
Two months.
Yeah.
I think so.
No.
Each one of them.
Operator.
Okay.
Yeah.
Hum.
A couple of months.
Eight.
The other one.
Understand.
Okay.
Oh no screen.
Exactly.
You need to be growing.
Good morning.
Sure.
Oh yeah.
Okay.
Right.
Okay.
Talk to you.
Oh, yes.
Mind, you would not.
Got it.
Uh huh.
It shows the restrictions.
We adopted him tragic granting.
Our expectation is to see.
And it looks like I, just want to top up the type of thing.
I think it is important to them.
It's about NII.
Thank you.
Total NII.
Much of it no known cause.
A little better than expected.
Since the gradual.
Yeah.
No.
And I I E.
You shouldn't have to say no makes sense cause habits from somewhere else.
My kids NII seems to be contributing as well.
Thank you.
Well I'll start.
Yeah.
Yeah.
Bank of America.
You May go ahead.
Got it.
They might've been.
I do Hello, good morning.
Almost.
Okay, we'll move to pay the first and then I'll go back tomorrow. Okay. So we'll continue with Pedro led to keep it all to be a bedroom.
Thank you for the answers. Thank you everyone for the call into question.
Yeah.
E. A L L bean portfolio they'll communicates I'd like she comes from a little bit more the messages that you.
So does some of the moving pieces up these two sides of the guidance on one hand, just saying here's Tim Sloan.
Non cohorts already performing better and that's why you had the confidence to.
With the reduced coverage and so on but on the other hand, the portfolio was very slow and it's that yourself, but NPL formation on the second part is too high.
If we follow the same same thing he is a L L and NPL formation in the second quarter or the perpetual dropped even further it's below 100%.
And if the court told electric I'm afraid to meet the guidance it should attract more a L. L. Because of hurt model expected model. So I'm, having a hard time, considering the scenario where the parts in cranes is getting each of the guidance and a L. A remains in the guidance.
Without.
The greater drop them coverage I'd liked your house too.
These pieces together of the loan portfolio growing without dragging aim a O L. Further.
And whatever you have in terms of a O L vis a vis coverage should be interesting here that'd be great. Thank you.
Okay. Good morning, it's a pleasure to talk to you Hum.
Whenever we look at the provisions or a L. L. I like to comment that quickly with you we're looking at it within expected losses.
And <unk> nine on one side when you have.
The provisions.
We're doing everything that could happen to your loan portfolio observed the concept of expected losses.
What we've done over time and a more positive cycle.
We started to make additional provisions of extraordinary provisions.
Isn't that we make and at the time that the cycle is not quite as positive when it becomes more challenging.
Aren't you consume part of those provisions that always observing this milk then to the expected launch of course, we also expect an increase in our <unk>.
Polk and we're working to increase and it increased 5% or our guidance is from seven to 11, So theres still some ways to go for us to be able to me that if we took the middle of the guidance for example.
As a reference it's this is somebody an example, but an increase of around 9% of our flows.
It's not that far from Pfizer.
But 1% that we grew now and of course with that increase.
Sure the car.
Yeah.
Through operations that have a better rating my phone a better credit score.
And therefore require less a L L. A and when you put that into the model of expected losses, you'll have a low lower consumption of a L. L. A because of the improvement of the estimates you're working with because you have.
Karen genes associated with that operation. So it seems to me that there's balance is quite adequate and increases at all of the increase in portfolio.
With us.
A smaller need a provision so it doesn't seem that the effect of increasing credits could somehow consume such a level of the allowance that would bring.
Lead our provisions should decrease more drastically also it's important to note.
If I am off provisions that we have.
And our credit portfolio.
It was 9.3 this quarter, that's the highest in our historical series. So the volume of provision it's Mike.
Satisfactorily. So we also need to consider that when we look at the progression.
Excluding.
The portfolio that's entirely provisions for it that's based on as I said did you only take.
See none to NPL over 90 days, our confidence level is 278%.
So we'd better cohort so we're looking at the cohorts that.
We originated in July August .
Up to December nine 394.
These cohorts have a need a lower need for <unk>.
Provision because I think once he is higher so.
L. L grows at a slower pace than the growth today because of the rollout of those operations.
Tri State.
So when you look at expected loss, but also what the rule in place too.
682 is the central bank as credit becomes more stressed with a trade or delayed it calls for a much higher a L. L.
From C to D. It goes from three to 10 10 to 30 30 to 50 50 to 70, so it calls for higher a oh, so the new operations.
With a better risk quality with a better repayment quality cost for the last Oh, that's why we understand it is possible. It is feasible to get to this balance between the growth of credit but somebody else.
But that should be around it's a single digit if it's double digits. It would be low double digits and we don't see.
Anything that could not be managed in such a way as we can have the growth of these two lines.
Loans than a L L without Ah trial on a L. L. A that it goes too far from what we have on the guidance so observing the guidance.
Excellent. Thank you. Thank you Pedro.
Got it.
It's my your backlog, Okay, we'll turn it back to Marty with Jeremy.
Can you hear us now.
Yes, good morning.
Hey, Martin.
Can you all hear me.
Yes, we can hear you this morning.
Thank you I apologize for the technical problems I have three quick questions first.
Well talk to you you asked about or excuse me.
Sad that market NII should be positive in the second half of the year I'd like to understand a little bit.
The visibility that you have about market NII does this depends on the interest curve or.
If theres a selic rate decrease before.
So did that have a more positive impact on market NII.
So I'd like to understand in your mind with what you can see considering why is fast market NII would improve in the second half of the year.
Second question about.
Delinquency you said, we're close to the beach, but you still expect it to.
The worse in the second quarter.
And maybe the third so it's going to take US six months to see the peak of NPL what are the lines that concern us the most.
Within N P L.
We saw a worsening on individuals npls, but if you can detail all of their products, which products are getting.
Getting a worst MPI, where nobody asked yet but the other is Washington is about the tax rate you pay the tax rates closer to 10% I understand that once the I O C benefits.
But the soft guidance you released at the beginning of the year had a tax rate of 16% to 20%, but make sure I understand.
Whether the guidance to expense from 16 to 20.
Well it might've. Good morning. It's good you came back about your first class question on market NII, that's exactly it my kept NII will improve.
The first quarter it was a lot better than the last quarter of last year. If you look.
Yes.
At the book.
If you can have a little card maybe our guys can send it to you later, but it was 800 in the last quarter of the year. They were 300 now so.
In the first quarter and it is improving.
Arthur on heartburn or something.
So our visibility is very clear very transparent that this will improve irrespective of what happens to the selic rate of course that movement to bring down interest rates. There's a lake range may make this scenario, even better but it will be a marginal improvements because we did what we had to do.
So what we're going to see quarter on quarter, it will be an improvement.
On market NII, the last quarter it will be positive that it is regardless of what happens with the interest rates should they of course as I said.
If the Selic interest rate.
Go down interest rate goes down it improves but it's a marginal improvement.
So poor NPL, let me make this very clear.
We told you two quarters.
Mac.
But M P. L would remain high in the first quarter and in the second quarter of this year the third quarter. Our expectation is that this will already be controlled.
First and second quarters for sure and then of course, we expected.
To have greater control and then on the third quarter, we expect it to be at a stable level.
That's what we're seeking that's what we're working for and that's what the signs tell us.
Okay.
You talked about the worsening of T V.
Delinquency the lines that brought more N P L issues, where the lines of.
College.
Sure.
Credit for small and medium sized enterprises basically their working capital and egg.
A good portion of that on those lines, where we have the customers in the past and during the pandemic, which were in line with grace periods, where the longer.
Time of operation so when they start to lay them. They had double the time to make the provision. So those are the lines that are.
Generating more provision, but basically the biggest is credit cards and working capital for <unk>.
Small and micro businesses.
That's the central point of attention and working capital lines and credit cards.
And that's why what we see the growth that we see.
D a.
Credit card line basically.
Four.
Credit cards upon your medium and high income people individuals who have a greater spending on the credit card.
So that's why there's a little bit of change.
Reducing approval.
For people with lower income in sports as far as the tax rate.
That this quarter it was up 10% she didn't know well Mario that shot.
The formation of this tax rates on one hand is depending on the organization upgrading Michelle.
On the other hand, I am C and D insurance companies' results that are extremely important for us in the insurance company has and the lower rates than the bank. So.
It's been nation, so to speak of these three aspects not only the insurance company, but all of the other companies that are linked to the bank's stand alone let alone Grupo Anvil, Consortiums and insurance company insurance brokerage all of them.
Yeah.
At the end of the day when you combine these three indicators.
It ended up getting to around 10%, but throughout the year.
As we get appropriate it.
Hi, Mike.
Pension moves towards a tax rate that would be higher.
The guidance of 16 to 20, which is what we had mentioned in our.
Earnings release in January so it shouldn't move towards this range of 16 to 20, which is what we had talked about yes, Mario what's implied in the 16 to 10, 2%.
Is that we really do expect to get better results in the second half of the year as we have been saying.
Therefore, the benefit of the IOC that remains somewhat.
Makes up for it last in terms of central Texas, So that brings the tax rate up that's the dynamic.
Excellent. Thank you.
Yeah.
Don.
Next question.
Danielle with us with trading snooze.
Yeah go ahead.
Yeah.
No.
Good morning, My question well.
My tune system.
On portfolio growth.
Yeah.
We heard that write off.
Maintaining a little even more 500.
Dropped a little so we need a little bit more.
Granted.
We have been challenged chopped.
I would like to understand you have less appetite and.
More impressive and trying to find things are hungry to get approval and retail the more tenured.
And incorporate when Hooper.
They're coming from and what lines that we can achieve that guidance.
In the last quarter call, we talked about this and growth was affected and more collateralized Helane.
Okay.
You can be too.
So glu tone.
So what are the priorities in terms of portfolio growth.
And will you have to cultivate alone printing.
Yeah.
Anything else that weighed on my question as well.
Book spoke about.
About this write off.
Greater than origination as you mentioned.
Yes.
But if you the truth.
Personal tried to close to 6% seven.
Seven eight or Sam.
Mortgage is performing better so I believe that the.
So your 2023, where you can get better growth Zaniest credit lines personal.
It's collateralized personal training.
The room portfolio it should cause we're taking part you know.
Coach will trade shows so you forget just a trade show that is happening as we speak.
Chris show.
Christmas Fund in this one.
Uh huh.
We will drive.
Hum business contracted at the Phase III and then once he was a great show. So I think the rule alone has been important to group mobile.
So we've been seeing.
It's easy to do business with him in the consumer portfolio.
Hum.
With interest rates, you've got in the way a little bit.
Resilience and the usefulness.
Usefulness.
Good thing to get more to chance to buy their own home.
It is expected to grow.
Foreign exchange reduced operation so it shouldn't have a better dynamic now starting in Q2 Katrina Q4, particularly.
Q2 should post a better growth dynamic.
Considering the color right.
Anthony.
Scanned for corporate corporate learning so.
Micro and small enterprises have been suffering more than you know it is true that there are companies out there.
So it just wouldn't be.
Hum.
So I'm going to tell you a month ago.
Due to Brazil, we visited all capital.
Yourself Blue Hills, we have a regional offices.
17 voices capital cities, we visited them in 90 business days. So is it your belief in just a matter of wisdom momentum.
The same message right Julien.
Credit quality is that most people don't think blooms could claims but that she cannot operate well he talked me tactical pricing.
My credit operation that is like pricing and that was the message is the whole thing not only the retail thing.
Homo trimer seamlessly.
And I assume that enhancements to answering a question do you think that the main lane I expected.
So what we have.
Can have a real struggle with the personal credit line, which is.
Pricing to withstand what's a house.
You can see credit clients easy heightened spending.
Higher income client.
Our real estate operations, why did you choose rooms and exchange.
And of course, there's been a push reviews will take us to close to two questions.
When the technical ones.
This increase in write offs.
But it's also related to this.
No.
Only losing two one.
Right.
Oh, you bought had been a little over that.
Yes.
Oh did plenty of ranked top.
Excuse me.
So what really changed so much there is also this aspect that explains.
It's indifferent.
Thank you.
Uh huh.
The next question.
Two of pneumonia or an alternative.
Hello.
I don't want to speak a little about the coming.
Seven weeks and expectation comes from any less with all.
Let's see package or does it come from a mortgage REIT company you. Just my first question when I'm looking at slide 17 of the presentation and it was a big decrease either.
Yeah.
I think the 90 day NPL of large corporates, even excluding americanas. So could you give us some color on what led to that write off.
Yeah.
Not too high as well.
The loan book.
Okay, Colombia kind of Mike and it's growing because economy of the country.
There are a lot better because the GDP growth expectation is higher.
I'll make a insurance company is right.
Just in the steeple and Puffiness.
Oh moved from them to take on a little more risk because the unification of better also local okay.
Of course, its economic situation improves.
Do you expect to happen given the fiscal framework to tax reform.
Yeah.
Ooh that's withheld.
Yeah.
The loan book to improve as well.
Christmas effect, regardless of economic growth and we expect to happen.
Because it is important it's good for all companies central.
And I'll also fronts.
In particular, but we've got Liz if we do see room for greater growth for our portfolio because we've made the decision because we are a college.
Oh, Yeah, I mean, you're seeing trading.
Tragic Grand change, so that we could control delinquency better because.
Same thing.
It's happening in other income groups and ethanol.
Hi, Cosmos, its economic scenario I'm gonna risk appetite.
This is a pretty machines and have spreads and interest rates.
No company impossible lungs will be adjusted overtime. So that's point number one.
Point number two did you tell us.
Regarding the VAT increase.
In Q2.
So not to say M P L.
This specific teams Oh.
Oh, you mean payroll clients corporate that drove this indication.
If the case isn't it.
Occasionally we talked about.
In Q4 to be provisioned, 100%.
Okay.
Two one but that is the case it was 100.
And then just thinking.
Yeah.
And again, it's specific.
Would you be renegotiated.
Uh huh.
Of course with this.
This maturity is 100% provision for it but of course it does have an impact on delinquency because the renegotiation mature age understood. Thank you very much.
Our next.
Chin Roberto Garcia from Barclays.
Hi.
You know very difficult to do very to hit the brakes hard in Suffolk rowing in the segments that you're trying to.
Emphasize.
But you also sounded very optimistic when you were talking about the opportunity.
Higher income segments. So my question is are we.
The stronger growth in higher.
Income allow you to continue to grow sequentially and in credit cards.
And whether these when leads to an improvement in AR.
The financial margin or only in the financial margin adjusted for risk.
Oh Wow.
Hello, goodness, so until that's a good morning Russell.
Classes.
You were talking before it wasn't a change let's understand as the ecosystem with credit cards in Brazil is flooding amazing 40%.
Of the deals.
Those are transactions that the Brazilian people make of consumption is through credit cards, it's even higher than in the United States United States I think it's 38% and there's no it's 40.
40% of the Brazilian population, but also has their credit cards in hand, and credit cards moved 21% of the Brazilian GDP, it's something close to two trillion b our hours. So the credit card industry credit card ecosystem in Brazil is very important very intensive with multiple players.
So credit cards.
So hopefully maybe and just to add credit cards as I said before.
Yes also made people to.
Get more embedded because they weren't able to get a credit cards, either with their banks or digital banks because of how easy it is for them to open a checking account.
Through mobile banking as I said earlier, so yes, we do.
Did it stepped on the brakes.
<unk>.
Decreased.
Private concessions to lower income people not only bradesco, but if you look at the industry.
Due to the level of indebtedness of the Brazilian population that it really did rich historical levels everybody's trying to shoot hold back on alone.
Question on granting tried this lower income population either by not giving them credit cards or working with Barry.
Works limits than what we usually work with them to choose the indebtedness level off the population, but there's a share of the population with a median income or high income that visit do consume a lot of some credit cards have a much higher spending level on credit cards, which results in us in exchange.
<unk> that help.
The formation of results, but also on plan and I I had forms T NII.
The N I am rather with the clients.
That's correct.
On the higher income.
And this availability with the high levels of higher income, where the volume's off it is a strategy.
It's part of the bank.
It's something we are adopting.
I'm sure that will resolve.
Brain.
A difference and the.
NII, but it already risk adjusted so there's also an appetite for growth on credit cards for that population of a higher income level and this population also brings a very strong benefits and Ts special, especially yes, as I said, there's higher fees involved as well.
Okay.
Next question Carlos Gomez HSBC.
Yes.
Yeah.
Carlos Carlos.
Hello.
Hello.
The quarter was 11.1% CET one.
As your goal for capital.
It will change given the current uncertainty in the world of what do we have seen in other markets and the second one is more in the medium term what do you expect for growth for the business for credit for 2014, 15, and 16 for the coming years. Thank you so much.
Obviously, a few so you'll be since you pay in terms of the capital goes Carlos we didn't have any significant difference or a change we have a very comfortable capital base. We believe that our capital will continue to grow throughout the year.
What is the interest trend.
Interest rates and after this moment, especially in the second half when the results will get better.
It also tends to bring benefits in terms of capital through.
Earnings retention, so I don't think there's been any significant change.
In terms of our capital Jacks have Louis C capital evolution as a continuous process that comes from the bank's operations.
And our profitability and accumulation of profit.
You'll be sick people.
As for our gross objection for coming years.
We believe that after these at this phase wherein we strongly focused on controlling N P. L.
We'll go back to a more important right.
Origination we have a strong focus on retail and sometimes you're saying.
So.
We believe that this segment has important opportunities for growth.
Or there's more delicate moment of the cycle. So we see British school as a play here.
What it'll be.
Growing together with the markets froze or even growing more than the market at some points.
We're comfortable yes, Carlos capital as we had said ended up growing now and this quarter.
There is no target, there's no guidance for that but our expectation is for generation of results of profits even.
Bank's own operation as we showed you in the presentation.
So it's difficult to do you actually have maintaining capital at all.
At a robust point as we have always maintained that the organization and the bank's growth.
Irrespective of this momentum.
At a more unfavorable point of the cycle in terms of delinquency. This is something that is addressed by the banks risks to Franco mentioned about the banks loan department, but it points.
Managers bankers.
Our relationship managers at the answer that Chris Shea our purpose.
Purposes, they have a clear purpose for continuous growth either in the bank of products services, and our insurance products as well that have been growing.
Soundly either in terms of the.
What was the loan book grows the results generation. They all have a target of budgets and N P. L to meet in the year.
'twenty three 'twenty four 'twenty five.
When there's like so.
So disease. This strategic plan after operation not only the bank, but the corporation itself.
Without all the companies.
I'm glad to.
Have this polo and there's very clear plans to continue to grow.
[laughter].
With quality with profitability.
A clear purpose of continuous growth.
Yes, what do you mean gross of 810 12, 15%.
What's the realistic objectives for Brazil in the coming years.
So for them.
Sure.
Okay.
Okay.
Any growth of any company, that's very much linked to the ability of the country to do so.
The country moves to more of a Brazilian GDP accrues most companies were crap.
Kind of hard to give you what number yeah.
We are going to grow 4%, 5%, 10%.
What you're doing what it's supposed to grow with quality.
Okay.
But it really depends on all the scenarios not just in Brazil, but also globally. So that we can grow safely and delivering results.
Sure.
So.
And always maintaining the robustness and health of the bank's balance sheet, how should give you a number at this point and.
I think that it depends on a number of factors.
Thank you Carlos.
Moving now to my last question is where does he feel with Brazil slowed out Michel.
Michelle.
Hello, Good morning, So revenue how do you think the opportunity you have two questions.
Right.
Well, they're both related to the bank's performance.
In this cycle.
I had a slightly worse performance than your peers, so starting with market and I I've been.
Drove a lot of revenues in the past and it looks like it would be.
Tractor.
Evaluation.
Mhm mhm too.
Redrafting or L M.
The next high school are you thinking something different to avoid this kind of bullets blood in humans.
Question regarding the quality of assets you have.
A large exposure to individuals and local income segment.
Do you think that this should change in any of the bank took him to know you.
Well consider.
We have a strategy trying to quickly.
And identified these Michael Yeah.
Just I have the mic.
And to be yes.
They're making retail.
Is this related to this exposure.
Hum and individuals you reformulating.
Maybe I'm too old physical classroom and to change the profile of clients you see a correlation between them.
Minting.
And.
You're better positioned and debates.
Hello, Michigan.
Good to speak with you.
And that Guy.
This year last year and this year.
At the beginning you name it.
We also have to remember that end of life.
Yes.
Interest income has been very critical of a desk or better than our peers of course, a very abrupt change that happened in Brazil interest rates increasing theory.
Absolutely.
Hi.
Of course.
Yes.
Correct.
Good evening.
A big thing.
And finally.
Each wheel operation.
We have.
Excellent.
We have to capture more clients.
Demand deposits cost savings for fun.
Oh, capturing lines you see that in a moment that the interest rate cycle.
You can have an adequate balance because he didn't want good NII I can make more in fee income given the interest rate differential between what investors what they put out in the market. So it is always important.
To grow.
Your country.
All right.
If I, if I should say that.
We changed the angle them strategy, because they can do it too much.
Conservative.
Yeah.
Different factor.
A high increase in interest rates that cannot be expected image.
We.
Cannot imagine that interest rates it would grow if powerfully and as quickly as it did but it's part of economic cycles as part of managing to Treasury.
If a bank might suggest and like I said in prior years.
Okay.
Yeah.
So it's those types of things how does E L F.
It's pretty serious.
We cannot I'm sorry.
Invoice.
Its exposure to low income.
I think yourself ratio really really doing well.
Retail banking and already have you can see.
In retail right now.
Of course.
With that.
Well of course can't cure for high income segments because of the faster we can get from these crimes, because we actually because of the penalty because these people.
In a stage of flying.
Yeah.
In Venice more venues golar owe more than that.
That's more than they are.
When you can use the relationship entrust much relationship with the clients.
Oh are we must carry with them. That's why we just truck change behind when it comes to make much bank, we have prime our branches in our regional offices working with these higher income why that.
That is why we acquired the bank in the United States and the Coral gables, two separate legal claims.
The Bronx, New York County.
Without precision different huh.
Proportionally.
Well that's involved in this or.
Hi, Josh.
That's fine.
But the physical bank and that's fine, but I just missed you would be comfortable I don't think Bradesco bank.
More than 2 million households in effect and that's why we partnered with Blackrock to amend its investments.
In the United States.
Seamless that is.
A number of it went from 42 handle strategies it happened.
Hmm.
We can have either one of those relationships.
Claims.
Two important.
You have the more long glass.
With all of them.
Okay.
Okay.
He might fail.
Okay.
She will continue to work, especially retail making the necessary adjustments.
Because people haven't changed.
Sure.
The relationship with the bank has changed.
Even mentioned in the presentation at December 20th 19 before the pandemic.
We would have one maybe in the education that the sellers and a bunch of different things now really 5000.
Okay.
10% of what it has been dynamic.
There are no longer going to bank franchise.
To pay a bill.
Tax.
Uh huh.
Hi.
The bank that's close on it.
Perhaps do adult smoker, okay advice regarding.
Investment and that's why we increased our head count investment advisors.
Increased two Townsend investment in Taiwan is.
Actually all of our personnel people go to a branch.
Hi.
In its own life insurance after the COVID-19 pandemic peoples.
People stretching in valuing our life insurance mortgage it really is about what can happen with them and what's going to happen to their families. Okay.
That's interesting home when they're going to get mortgage my time.
If you look today as people and their relationship with the bank.
It's actually on line nine 6% of perfection.
Every day.
There are many.
It happened.
People are coming to the brand.
Adjustments need to be.
So how is the bank range then it has to find yourself to be almost my major concern.
So as clients.
Listen all of range with uninteresting specialized I mean the truth.
And then Chris quaking at the branches to meet their needs.
The panel.
Wow.
The digital platform.
Hi.
That isn't moving millions of clients, who do not want.
Want to go to a bunch of people want to be serviced by and watch them.
Via chat.
Good luck.
Via video conferencing Youre.
Youre not going to go to the brain.
So hopefully over time.
Children, it's kind of been happening.
And the way the people as it relates to the bank and then Hans.
Elevated but different danskin for disciplined enough to adapt to different types of clients going live at the end of the beach when he wants it and launch our clients would want them to be happy with remote et cetera.
We can have better and better results.
Well, Yeah clubs last single instance, well.
So it's not it's strategically positioned.
But it is some repositioning in terms of how people have clients.
I'm sorry.
But the changes you're seeing the changes have accelerated also because of the COVID-19 pandemic.
Yeah.
Thank you very much what have you regardless.
Thank you very much.
Most of our Q&A session.
I shouldn't.
The Germans are smoke move yesterday.
My name.
I'm totally wrong.
And they need to sustainable you know.
Hi, Todd.
Do you normally might.
Got it.
I would just like to thank all of you for being here with US participating in this earnings conference or video conference call. It's always a pleasure to be able to talk more in more detail about the banks you certainly know D. I R area will starches canceled meetings that were going to have closer to you we remain.
Available, but in any case, our Investor Relations Department is available to all of you to take any additional information I wish you all a great day and great weekend and thank you very much for your attention.
Okay.
Yes.
[noise].
Okay.
[noise].
Okay.
Yes.
Uh huh.
Okay.
Okay.
Hum.
[noise].
Okay.
[noise].
Okay.
Yeah.
Okay.
[noise].